House prices (again) but on the up.

**The Lone Gunman** · 8 November 2005, 08:36

http://news.bbc.co.uk/1/hi/business/4415014.stm

House prices rise as sales fall
House prices have risen over the past year but the number of sales has slipped, Land Registry figures show.

The number of houses sold in England and Wales for the three months to September stood at 261,481, 15% lower than a year ago.

Prices, however, were 3.5% higher than at the same time last year - standing at an average of £194,589.

But this compares with an annual increase of 16.3% seen at the same time in 2004.

Overall, the biggest rise in prices was seen in the north of England and Wales. The south of England and the Midlands had the slowest growth.

House prices in the capital rose 4.47%, the strongest performance for quite some time.

Slight pick-up

Land Registry figures are generally not as up-to-date as those of banks and building societies, because they record completions and not mortgage approvals.

However, the figures are viewed as the most accurate measure of house prices, because they include all property transactions.

Recent surveys from the Halifax and Nationwide have suggested a slight pick-up in house prices.

Last week the Halifax said annual house price inflation had risen for the third month in a row.

Prices for the three months to the end of October were up 2.9% compared with the previous three month period, Halifax said.

AVERAGE HOUSE PRICES BY REGION Region Jul-Sept 2004 Jul-Sept 2005 Price increase % Wales £135,162 £145,188 7.42% Yorkshire £133,552 £141,188 6.01% North £123,606 £130,948 5.94% North West £133,878 £139,929 4.52% Greater London £287,470 £300,329 4.47% South East £227,991 £234,833 3.00% East Anglia £174,949 £180,053 2.92% East Midlands £151,405 £155,630 2.79% West Midlands £159,203 £161,076 1.18% South West £201,156 £202,249 0.54% England & Wales £187,971 £194,589 3.52% Source: Land Registry

**n5gooner** · 8 November 2005, 08:38

Well done very complete.

**Lucifer Box** · 8 November 2005, 09:12

The Power of Averages

My postcode area...

Average Cost: £286,578
Detached: £950,695
Semi-detached: £411,810
Terraced: £278,818
Flat: £221,334

Change in last quarter: -2.3%
Change in last year: -6.9%
Sales: 982

**ALM** · 8 November 2005, 09:52

Why .... where do you live lucifer?

**Lucifer Box** · 8 November 2005, 17:20

Originally posted by ALM

Why .... where do you live lucifer?

It was an attempt to illustrate that average house price movements are meaningless at the individual level. It means little to the residents of SW19 (where I live) that the "average" house changed in value by an "average" of +3.6% in the last year when their "average" house changed in value by an "average" of -6.9%

Wish I could afford one of those detached houses at £950,695 though.

**OwlHoot** · 8 November 2005, 21:27

Originally posted by Lucifer Box

Wish I could afford one of those detached houses at £950,695 though.

You probably could have done 20 years ago.

A few years ago I thought I was a mini-Rachman with a flat in Milton Keynes and two studio flats in central London. But now I realize I was/am a right loser for not selling the lot a few years ago and rolling the proceeds into a large house, even in some dodgy area.

The problem is that when prices increase, the larger the original price the larger is the proportional increase. So someone pissing about with studio flats benefits much less than someone with a larger house.

**n5gooner** · 8 November 2005, 21:43

Originally posted by OwlHoot

You probably could have done 20 years ago.

A few years ago I thought I was a mini-Rachman with a flat in Milton Keynes and two studio flats in central London. But now I realize I was/am a right loser for not selling the lot a few years ago and rolling the proceeds into a large house, even in some dodgy area.

The problem is that when prices increase, the larger the original price the larger is the proportional increase. So someone pissing about with studio flats benefits much less than someone with a larger house.

yes but eggs in baskets and all that! There again, several large places, but then they are more difficult to rent out, I have a 6 bed house in Bromley it sat emplty for about a year on the retal market, and cost me the best part of 20k !!!

Thank god its let now!

**mcquiggd** · 9 November 2005, 00:47

Should have turned it into accomodation for asylum seekers ... lets see... 6 bedrooms, 20 people per room, benefits paid directly to you from central government funds, plus a cut of the profits from the heroin and prostitution... mmm.. you could retire in 2 years....

**Lucifer Box** · 9 November 2005, 08:49

Originally posted by OwlHoot

You probably could have done 20 years ago.

I'm sure you are right. My modest SW19 pile has quadrupled in price (at least) in 15 years. Thing is these days we haven't got rampant inflation to erode the value of the debt quickly. I just look at my parents' generation. They bought a 6 bedroom semi in Birmingham in 1971 for £6k. By the end of the decade inflation had eroded that so much the mortgage repayments were negligable

House prices (again) but on the up.